Exam 2: Foundations and Technologies for Decision Making

Single decision makers rarely face decisions with multiple objectives in organizations and so are not the focus of data analytics tools.

In creating a normative model, a decision maker examines all the alternatives to prove that the one selected is indeed the best, and is what the person would normally want. This process is basically known as ________.

When an Accounts Payable department improves their information system resulting in faster payments to vendors, without the Accounts Receivable Department doing the same, leading to a cash flow crunch, what can we say happened in decision-theoretic terms?

What form of decision theory assumes that decision makers are rational beings who always seek to strictly maximize economic goals?

Generating alternatives manually is often necessary in the model-building process. The best option for the decision makers is to generate as many of these alternatives as is conceivable.

Business intelligence systems typically support solving a certain problem or evaluate an opportunity, while decision support systems monitor situations and identify problems and/or opportunities, using analytic methods.

According to Simon (1977), managerial decision making is synonymous with the entire management process. Give a working definition of decision making.

All of the following statements about risk in decision making are correct EXCEPT

Groupthink in a decision-making environment occurs when

For DSS, why are semistructured or unstructured decisions the main focus of support?

A DSS is typically built to support the solution of a certain problem or to evaluate an opportunity. Describe three key characteristics and capabilities of DSS.

Generally speaking, people intuitively estimate risk quite accurately.

When a DSS is built, used successfully and integrated into the company's business processes, it was most likely built for a(n)

The HP Case illustrates that after analytics are chosen to solve a problem, building a new decision model from scratch or purchasing one may not always be the best approach. Why is that?

A scenario is a statement of assumptions about the operating environment of a particular system at a given time; that is, it is a narrative description of the decision-situation setting. What does a scenario describe, and what may it also provide?

A DSS application can employ a data management subsystem, a model management subsystem, a user interface subsystem, and a(n) ________.

The user communicates with and commands the DSS through the ________ subsystem.

Knowledge-based management subsystems provide intelligence to augment the decision maker's own intelligence.

The software that manages the DSS database and enables relevant data to be accessed by DSS application programs is called

In the design phase of decision making, selecting a principle of choice or criteria means that